I would like to welcome you both Congressman Cox and Congressman Dicks to the Senate Committee on Banking, Housing, and Urban Affairs. I commend both of you for your diligent work on the reports, both classified and unclassified, produced by the Select Committee on U.S. National Security and Military/Commercial Concerns with the People's Republic of China. The fact that the Final Report was unanimously approved by the five Republicans and four Democrats on the Select Committee speaks of its accuracy and fairness.
Thank you for including recommendations in your Report. Of the 38 recommendations by the Select Committee, eighteen fall under this Committee's jurisdiction -- export controls on sensitive dual-use items.
I have been examining the Export Administration Act for the past six months. I have listened to the concerns of those who want to loosen export controls, and those who want a tightening of export controls, and just about everyone in between. Early in my effort to reauthorize the EAA, I closely examined the classified Cox Report. It helped me put everything into perspective and know what on which specific areas I should concentrate.
I fully agree with the Report recommendation that we should focus less on controlling those goods and technologies that have a marginal benefit to national security and focus more on critical technologies. Additionally, it is essential that the Administration exercise its leadership and take action to improve our multilateral export control regimes, specifically the Wassenaar Arrangement.
My subcommittee held a hearing on March 16th which focused on multilateral export control regimes. Every one of the witnesses - both government and industry panelists -- agreed that Wassenaar was inadequate. Each witness also concluded that there may be times when the U.\S. should exercise leadership by controlling critical goods that are not included in a multilateral export control regime. U.S. leadership has at times convinced our friends and allies to also control those critical technologies when a compelling case existed. The Cox Report mentions that the current administration made a proposal in 1993 to abandon Wassenaar's predecessor, COCOM. COCOM, the Coordinating Committee on Multilateral Export Controls, was very beneficial to the U.S. because it did not allow national discretion. The U.S. should immediately exercise its leadership by negotiating an effective multilateral dual-use export control regime.
It has been our goal to take into account the Cox committee recommendations as we have been working toward reauthorization of the EAA. The purpose in this exercise is not to fool ourselves. The export control process must be realistic in approach, reflecting what is achievable in practice. It must increase transparency, thus creating accountability and responsible behavior.
Again, thank you Congressman Cox and Congressman Dicks for being with us here today and answering our questions. I look forward to your testimonies and further explanations of the Cox Report recommendations as they relate to dual-use export controls.
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